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Building an Ethics Program

By Susan Hunter, Georgia SBDC

accommodation in ZaragozaAs an international package delivery company's ad campaign once stated, Cordoba hotels"You can't fake early." Likewise, a business can't fake integrity—or at the least not for very long.

Most small businesses would be quick to say they embrace the highest of business moral standards and have had no instances of unethical behavior. However, this "ostrich" approach may find them suddenly in an unpleasant circumstance with lost good will, embarrassment, or worse.

ERROR MSGIt is no secret that small businesses become totally consumed with the day-to-day responsibilities of running a business. The creation of policies and procedures generally arises from needs more directly associated with profit margins and the bottom line. But the importance of values in the workplace should not sit on the back burner. On the contrary, creating a simple program that demonstrates the company's commitment to ethics goes way beyond avoiding sticky situations. According to Cathleen Sullivan of Redhawk, an ethics and values communication company, studies have shown that over time, ethical companies have more loyal customers, dedicated employees, and greater success.

While a moral business culture may be difficult to define, the creation of an ethics program is a step in the right direction to cultivate such business morals. The first phase is to create a summary of company policies, usually called a "Code of Conduct" or "Code of Ethics." The language should be direct and clear. Then a conscious effort should be made to consistently communicate and demonstrate this message with regular workday examples to which employees can relate. For example, when a customer service representative handles a sticky situation in a manner that exemplifies the code of ethics, company leaders should share with all employees how the decision was made and how the process corresponds with the company's written code of ethics. The beauty of this technique is that it communicates the message from both the top down (management's recognition of the circumstance) and from the bottom up (an employee setting an example of the importance of workplace ethics).

In communicating the message from the top down, company leaders must also practice moral management as well. By exercising moral management on a steady basis, the message gains employees' attention and influences their thoughts and behavior. "The best leaders both demonstrate personal integrity in their actions and demand it of their employees," says Bob Lewis a Minneapolis-based consultant with Perot Systems, "and take steps to ensure the core values of the business are well understood by all employees."

Sullivan also suggests that the establishment of an ethics program involves "selling" the program to employees. To insure that an ethics program is embraced by all personnel, the benefits of such a program must be communicated to them. While benefits from management's point of view are clear, those objectives may not excite some employees. Sullivan says employees typically respond well to these points:

  • A better work environment for everyone
  • Improved personal reputation and career advancement
  • Becoming a positive role model for others
  • More pride in producing a quality product or service
  • A clear conscience

ERROR MSGBuilding a strong ethics program takes time and expertise, but there are resources at hand for the small business owner. Several "off-the-shelf" packages are available and may be located by searching on the Internet (keyword "ethics") or through trade associations. If working with a pre-packaged program, it's important to choose one that allows room to customize communications for businesses and their employees.

If you would like to have help starting an ethics program in your business, contact your local SBDC consultant.

> See also: Management & Leadership



 

Susan Hunter is a business consultant in the Columbus office of the Georgia SBDC network. To find your local SBDC call the state office at (706) 542-6762 or via the web at www.sbdc.uga.edu.

Georgia SBDC
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